India's demand for gold and silver jewelry will explode in the near future!

At the suggestion of the Gem and Jewellery Council of India and industry practitioners, the Indian government considered reducing the gold tariff from the current 12.5% ​​to 7.5% in the budget announced on February 1, in order to reduce the price of imported gold, stimulate the growth of the domestic gold market, and curb the development of the gray industrial chain (excessive tariffs have made gold smuggling in India extremely rampant).

In 2020, affected by the epidemic, the economies of countries around the world experienced recession and national income levels declined, which led to a sharp drop in global gold demand in 2020, a weak gold market, a sharp drop in India's gold imports, and citizens reduced their purchases of gold and silver jewelry.

However, preparing a large amount of gold and silver jewelry for weddings is a traditional custom in India, so in a sense, gold and silver jewelry are "must-have products" for the Indian people . The weakness of the Indian gold market in 2020 has accumulated strong demand for gold. Once a node appears, the Indian gold market will usher in an explosion.

The Indian government's reduction in gold tariffs will lead to a drop in the prices of gold and gold jewelry. India will usher in a wave of weddings in April and May. Therefore, the formal reduction in tariffs will become a node for the gold market to explode. The accumulated demand in 2020 and the demand for the wedding season will all be released during this period, and the Indian gold market will usher in substantial growth.

Although the gold market is set to explode, the market for synthetic gemstones (such as imitation diamonds) may decline. The Indian government has increased the basic customs duty on imports of synthetic gemstones from 10% to 15% in its budget , making synthetic gemstones more expensive.

In addition, the budget also raised tariffs on some other goods, including LED lights ( from 10% to 15% ), parts of electronic toys ( such as electric toy cars ) ( from 5% to 15% ) , etc. Therefore, sellers should pay attention to India’s 2021 fiscal budget in a timely manner to adjust the prices of their products.

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